Research On Order-of-Market-Entry Advantage

In this paper, the background and significance of the research on order-of-market-entry are introduced, its growth history is reviewed in a systematic way, foreign literatures in this respect are summarized from the viewpoints of the theoretical framework and empirical results, and the common approaches are also introduced.Then theoretical analyses are carried out from a new angle of view. Market orientation, research pattern and related fundamental theories are discussed so as to construct an integrated theoretical system for research in this field. A series of game models are established according to the theory of game of timing.Besides, empirical analyses are given on the basis of new data collected in China. The results of the empirical research on fund market show that first-mover advantage is existent but the effect is not so prominent as preceding research concluded. Based on a historical analysis of different industries in China, it is pointed that there is no such kind of order-of-entry strategy which can applies to every industry.Finally, conclusions are drawn as follows: Holding first-mover position does not mean having competitive advantage, it only offers an opportunity—one to create irreversible advantages earlier than its competitors; Meanwhile, first-mover advantage also does not equal to sustained competitive advantage which depends on sustained innovation and corresponding strategy support.